Despite negative economic data the pair AUD/USD holds high position in the hope that the US Fed will not increase interest rate in the near future. However, due to decline in the price of oil and commodities, the pair is reversing inside the downward channel on the daily chart with the bottom limit at the level of 0.6700. Yesterday, the price rebounded from strong resistance level of 0.7225 (ЕМА144 on the daily chart), due to comments of the oil; ministers of Iran and Saudi Arabia.
On 4-hour and hourly charts the indicators OsMA and Stochastic give sell signals. On the daily chart the indicators are reversing toward short positions.
Breakout of support level 0.7120 (ЕМА50 on the daily chart and ЕМА200 and ЕМА144 on 4-hour chart) and 0.7100 will give ground for the further decline in the pair AUD/USD to the levels of 0.6975 and 0.6950 (middle of the downward channel on the daily chart), 0.6910 (Fibonacci retracement of 0% versus the last wave of decline since July 2014), and to the key support levels of 0.6350 and 0.6000 (lows of 2008 – 2009).
Different monetary policies of the US fed and RBA, decline in commodity prices and instability of the financial markets may trigger further decrease in the pair AUD/USD in the medium-term.
Support levels: 0.7120, 0.7100, 0.7000, 0.6975, 0.6950, 0.6910 and 0.6860.
Resistance levels: 0.7225 and 0.7330.
Sell Stop: 0.7150.
Take-Profit: 0.7100, 0.6975, 0.6950, 0.6910, 0.6860 and 0.6810.
Buy Stop: 0.7240.
Take-Profit: 0.7300, 0.7330 and 0.7510.